Brussels, Belgium (PortSEurope) June 29, 2019 – Yesterday, the European Union and Mercosur member countries have agreed on the draft text of a free-trade deal. Mercosur was established in 1991 and comprises Argentina, Brazil, Paraguay, Uruguay. Venezuela, which officially joined in July 2012 was suspended from membership in 2017. In December 2012, the Protocol of Accession of Bolivia to Mercosur was signed. This protocol is pending ratification by all parliaments in Mercosur countries.
The European Commission reports that current EU bilateral trade with Mercosur already totals €88 billion a year for goods and €34 billion for services. The EU exports to Mercosur goods worth €45 billion a year and imports Mercosur products of nearly the same value (€43 billion). When it comes to services, the EU exports more than twice as much as it imports: €23 billion of services supplied by EU firms to clients in Mercosur versus €11 billion in services delivered to EU clients by firms from Mercosur countries.
The treaty must now be approved by the European Parliament and individual member states.
European ports can expect to increase traffic with Mercosur countries as trade terms improve between the two trading blocks. EU companies will benefit from privileged access to a market of over 260 million consumers. EU exporters will gain from progressive tariff cuts that over time will bring European companies yearly savings of more than €4 billion.
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